Thursday, July 24, 2014

THE END OF CORPORATE WELFARE (ELA*) IN PUERTO RICO - TRANSITION TO PUERTO RICO STATEHOOD TO BEGIN

The use of the US Territory of Puerto Rico as an offshore tax shelter for US Corporations is the reason why Puerto Rico has not been admitted as a State of the Union. The beneficiaries of this enormous tax evasion scheme have used their power and money to prevent PR from becoming a state.

That's why my 30-year battle against this outrageous Tax Evasion Benefit. Corporate Welfare and Special Tax breaks for the rich, have benefited a few for almost a century and kept the US Citizens of Puerto Rico, a territory of the US, without basic rights.

Today I am proud to say that Corporate Welfare seems to be coming to an end.  We thank all our anonymous advisers and supporters who have never given up and help along this very difficult way. The battle is not yet won... but remember, this is a David vs Goliath fight. We thank Luis and Jose and others. You know who you are...

Puerto Rico a US Territory with US citizens for over 100 years is the largest victim of Corporate Greed. Greedy politicians in Puerto Rico, a US Territory of American citizens, in alliance with interested sectors in the island, including corporate lobbyists, CFC's, the local opposition parties, workers unions, local Banks, etc. have lobbied Congress for decades to obtain tax exempt privileges for US Corporations who do business in Puerto Rico. 

This has consisted in obtaining legislation that created IRS Codes to define Puerto Rico as a foreign country for tax benefit purposes. CFC (Controlled Foreign Corporations) does not mean they are foreign, it means Puerto Rico is foreign! This is a legal violation of the US Constitution Territorial Clause. 
IT WAS TIME TO END THIS SITUATION! LET'S WELCOME TO STATEHOOD FOR PUERTO RICO. - MJR
 
MJR & 51 STAR AMERICAN FLAG
INCLUDING PERTO RICO's STAR
1980
Obama presses to close corporate tax loophole 'inversions'
 by JEFF MASON
LOS ANGELES, July 24 Thu Jul 24, 2014 6:00am EDT
REUTER


U.S. President Barack Obama will call for an end to a corporate loophole that allows companies to avoid federal taxes by shifting their tax domiciles overseas in deals known as "inversions," White House officials said.

Obama will make the comments during remarks about the economy at Los Angeles Technical College. The president is in California on a three-day fundraising swing for Democrats. 

So-called inversion deals occur when a U.S. company acquires or sets up a foreign company, then moves its U.S. tax domicile to the foreign company and its lower-tax home country.

Nine inversion deals have been agreed to this year by companies ranging from banana distributor Chiquita Brands International Inc to drugmaker AbbVie Inc and more are under consideration. The transactions are setting a record pace since the first inversion was done 32 years ago.

Several Democrats have offered bills to curb inversions, which let companies cut their taxes primarily by putting foreign earnings out of the reach of the Internal Revenue Service. Obama will throw his weight behind the Democratic bills, calling for a rule change that would deem any company with half of its business in the United States to be U.S.-domiciled.

The proposed changes, already put forward in Obama's annual budget, would be retroactive to May of this year and implemented independently of moves to achieve broader tax reform. 

"We have seen increased activity from companies in the inversion space and as a result the president's view ... is that we should be acting as quickly as possible," a White House official told reporters on a conference call. "That will buy us more time and space to ... reform our tax code as a whole."

Republicans prefer a change to inversions to be part of an effort to reform the U.S. tax code. The White House supports broad tax reform but argues that action on inversions is needed now.
MJR Raising US FLAG
"We can't afford to wait to reform our tax code completely to deal with inversion," the official said, adding that such deals would cost the United States an estimated $17 billion in revenue over the next decade. (Additional reporting by Kevin Drawbaugh in Washington; Editing by Ron Popeski)

* ELA - ESTADO LIBRE ASOCIADO - US Territory of Puerto Rico